austinhippie (81.12)

We are the Problem and the Solution

4

The difficulty is that we are the problem and the solution. This time no one laughs when you say "this one really is different". Even W.B. acknowledges the thought as true. Why will the banks not lend? And yet, this is the time when the greatest opportunities abound. Volitility goes both up and down and the long term trend will be up from here despite some stumbles and bumps. I do not understand the lack of optimism in the market when it pervades so many other facets of everyday life right now - with the palpable sense of hope abounding. Perhaps we need something more meaningful to invest in - direct investments in the people we care about and in our communities.

To succeed in the market, average people must research companies and invest regularly in a diversity of them. Five years from now what will we think of ourselves if we are ruled only by fear when presented with such bargains right now and in the coming months. Almost everyone says this will worsen before the rise. But no one person really knows. I am remaining the long term true bull - an investor month in and month out, in markets - whatever their heights or depths, around the world and here in the USA, in large companies, behemoths and micros, covering market sectors. I will not abandon the financial industry either. I suspect that some of the next great fortunes will be made in the financial sector, just as so many more fortunes have been lost to it in the last months. I will do my part to engender market confidence as I am able and trust that other will do the same as they are able and encouraged.

Read up on your history...it was precisely this type of thinking that caused so many people to lose money after the crash of 1929 (most people lost money in the declines that slowly continued for years) and it was exactly this type of thinking that prolonged the great depression...government intervention is the CAUSE of our problems and NEVER the solution.

Don't you ever look back at those low points in market history and wish you could have put some money in at the low? This may be our chance. I have time to wether the market. And I didn't say anything about wanting or not wanting government intervention. Outcomes of government are beyond my control. I can only control my actions and choosing to act is my resolve.

I agree with you. Averaging into these times when people are fearful and making emotional decisions is the best decision. If you take your time and pick wisely it is doubful that you will do poorly. As for financials I agree, I wouldn't touch those for a while. They are going to be so closely watch by regulators that it will be amazing if they every turn a market beating profit.